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If At First You Don’t Succeed…

SPX has seen two bullish IH&S Patterns busted over the past two weeks. They came close enough. The latest even completed last Thursday before fizzling after the overnight ramp fell apart under scrutiny of the mounting risks in the markets.

VIX’s 26th Drop Below Support this Year

But, there’s nothing like a 1%+ gap higher over a weekend when investors are already on edge, to complete an IH&S — which is exactly what we’re facing this morning. While the French election results were a relief to the status quo, there are still other significant risks out there. This week.

Sure, they can hammer VIX back down below support (-32% in the past week!) and break USDJPY out of its latest bearish pattern; but, will the breakout hold this time? Last I heard, the Korean situation hadn’t gone away, and the US government still faces a potential shutdown Friday night.